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Statoil in test case as Canada extends seabed

All eyes are on Canada's extended territories as the test case for oil companies because Statoil has found potential new fields there. If drilling takes place, Canada and Statoil will have to pay the United Nations one per cent of revenues in the sixth year of production, with further payments till the 12th year.

PHOTO: REUTERS

Oslo

NORWAY'S Statoil risks millions of dollars in extra costs in Canada - a test case that could spell problems for other oil firms too as coastal states extend their seabed territories far into resource-rich ocean depths.